CAI Aiding Defense of Manager in PA Real Estate Commission Action

A report of the CAI Pennsylvania Legislative Action Committee

As we have reported previously, a community association manager is being prosecuted by the Pennsylvania Real Estate Commission (the “REC”) for practicing “property management” without a real estate broker’s license. This is extremely important because REC’s argument is that they are empowered to oversee “property management.” Therefore, REC believes that they must regulate community association management companies.

A hearing in this case has been scheduled for January 12, 2023. CAI’s Pennsylvania Legislative Action Committee is supporting the defense of the case through a grant from the CAI Issues Advancement Fund. The grant was unanimously approved by CAI’s Government & Public Affairs Committee in November.

In a virtual meeting of management companies of the chapter held in the Spring of 2022, two thirds of participating management companies indicated they do not have a real estate broker’s license. Should an unfavorable decision by the Real Estate Commission occur, the costs of compliance for every community association management company managing in Pennsylvania will be considerable. (Click here to view the session slides from this meeting).

Should the current REC enforcement action result in an unfavorable outcome for the management company in question, every community association management company in the Commonwealth of Pennsylvania will likely be required to have a PA Broker’s license to continue to manage community associations. In order to have and maintain a PA Broker’s license, you need to:

  • Be 21 or over and a high school graduate
  • Complete 16 credits (240 hours) approved broker real estate education
  • Have worked three (3) years as a licensed real estate salesperson
  • Document 200 points earned by specific real estate sales and rental experience (selling, listing, renting, etc.)
  • Pass the Brokers’ license exam

CAI is pleased to be able to aid in the defense of this case, and will report on any decision that comes down from the REC after the hearing in January.